Do You Think the Mining Industry Should Pay More in Taxes? Why or Why Not? Support Your Point of View.

The tax rate on mining industries should be as low as possible to facilitate accommodation of both the low-income earners and middle-class employees. By so doing, there are myriads of significant economic merits, which include but not limited to the infinity of the natural resources, which is very common in menace in low- and middle-income countries. Mining industries provide massive employment opportunities for the millions of jobless youths, which in turn help to mitigate the exponentially growing unemployment challenges across the globe. When such industries pay low tax, it inevitably manifests subsidy that may help boost the operational activities within the mining relational industries (Mining, 2016). However, various global governments benefit from the paid royalties and the pre-stated taxes from these firms, its of essential vitalities to reduce the operating costs of mining industries through tax reduction. Such a mitigative step diminishes fiscal uncertainties like political risks, anomalously escalated production costs, and severe financial regimes (Curtis, 2009). Creation of such a low geo-economic environment for mining industries in reinforcement of mineral investments helps in mutual distribution of benefits across a state catalyzing balanced economic growth as it does not deter other investments.

Works Cited

Curtis. (2009). Mining and Tax in South Africa. The Curtis Research.

Mining, I. C. (2016). Taxation and Other Economic Benefits on Mining Industries. Society And The Economy/ Economic Development.